Share-split context: A forward split was recorded on Sep 11, 2015 with coefficient 2. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

What this ETF is trying to do

The State Street(R) SPDR(R) S&P(R) Pharmaceuticals ETF (XPH) is an exchange-traded fund that focuses on the pharmaceutical industry. It holds a variety of companies involved in making medicines and healthcare products. This ETF is not leveraged, meaning it does not use borrowed money to multiply its returns, and it is not an inverse fund.

Top Holdings

The following are some of the largest companies held by this ETF. Please note that this is a partial list:

• Xeris Biopharma Holdings Inc (2.46%)

• Veradermics Inc (2.42%)

• Amgen (2.32%)

• Ligand Pharmaceuticals Inc (2.15%)

• Viatris Inc (2.13%)

• Eli Lilly and Co (2.05%)

• Indivior (2.05%)

• Perrigo Co PLC (2.05%)

• Ani Pharmaceuticals Inc (2.04%)

• Pfizer Inc (2.04%)

What the numbers show

When looking at how this ETF has performed, it is important to understand two different types of returns: price return and total return. Price return only tracks how much the share price changed. Total return includes those price changes plus any cash distributions paid out to investors.

Because this ETF has a history of "forward splits," we use split-adjusted numbers to see the true performance. In a forward split, each old share becomes multiple new shares, and the price per share drops proportionally. This does not mean you lost money; it just changes how many shares you own.

Here is the performance data:

• Year-to-Date (YTD): The price return is approximately 12.32%, while the total return is approximately 12.63%.

• One-Year: The price return is approximately 30.14%, while the total return is approximately 30.75%.

• Three-Year: The price return is approximately 61.10%, while the total return is approximately 66.50%.

Income and distribution explanation

This ETF pays out cash to shareholders, known as distributions. The current distribution yield is approximately 0.44%. This number describes the cash paid out relative to the current share price of $62.91.

Distributions for this ETF usually happen quarterly, and there have been 4 payouts in the last 12 months. While distributions provide cash income, they are not the same as total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). Some investors worry about this because if a fund's value drops too much, it can be hard to recover.

For XPH, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• The ETF has shown positive price returns and total returns over the one-year and three-year periods.

• It has a high income rating grade of "A."

Cons

• The distribution yield is relatively low at approximately 0.44%.

Beginner takeaway

XPH tracks companies in the pharmaceutical sector. When studying this ETF, remember that total return is the most complete way to see how much value was created, as it combines share price changes with cash distributions. Always look at both the price movement and the yield to get a full picture.